MACQUARIE INVESTOR DAY ELIKHULU AND THE FUTURE JUNE 2018 - PowerPoint PPT Presentation

MACQUARIE INVESTOR DAY ELIKHULU AND THE FUTURE JUNE 2018

DISCLAIMER The name 'Presenter' refers to Pan African Resources PLC and its advisors, subsidiaries or affiliated companies. This presentation has not been filed, lodged, registered or approved in any jurisdiction and recipients of this document should keep themselves informed of and comply with and observe all applicable legal and regulatory requirements. Statements or assumptions in this presentation as to future matters may prove to be incorrect. The Presenter makes no representation or warranty as to the accuracy of such statements or assumptions. Circumstances may change and the contents of this presentation may become outdated as a result, and the Presenter has no obligation to update the presentation or correct any inaccuracies or omissions in this presentation. Recipients should not treat this presentation as advice relating to legal, taxation or investment matters and are advised to consult their own professional advisers. 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FORWARD LOOKING STATEMENTS Statements in this report that address exploration activities, mining potential and future plans and objectives of Pan African Resources are forward-looking statements and forward-looking information that involve various risks, assumptions and uncertainties and are not statements of fact. The directors and management of Pan African Resources believe that the expectations expressed in such forward-looking statements or forward-looking information are based on reasonable assumptions, expectations, estimates and projections. However, these statements should not be construed as being guarantees or warranties (whether expressed or implied) of future performance. There can be no assurance that such statements will prove to be accurate and actual values, results and future events could differ materially from those anticipated in these statements. Important factors that could cause actual results to differ materially from statements expressed in this report include among others, the actual results of exploration activities; technical analysis; the lack of availability to Pan African Resources of necessary capital on acceptable terms; general economic, business and financial market conditions; political risks; industry trends; competition; changes in government regulations; delays in obtaining governmental approvals; interest rate fluctuations; currency fluctuations; changes in business strategy or development plans and other risks. Although Pan African Resources has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. Pan African Resources is not obliged to publicly update any forward-looking statements included in this report, or revise any changes in events, conditions or circumstances on which any such statements are based, occurring after the publication date of this report, other than as required by regulation. 3

THE AFRICAN FOCUSED GOLD PRODUCER 4

OVERVIEW OF PRESENTATION • Background • 2018 predicament and remedial plans • Tailings operations and Barberton Mines • Future growth prospects  Royal Sheba  Egoli 5

BACKGROUND

BACKGROUND PAR is dual-listed on the JSE and on AIM • • All operations are currently in South Africa Market capitalisation ~ ZAR 3.1 billion • • Group refocused on its core gold operations during the current financial year High cost ounces curtailed - strategic focus on long life, low cost, sustainable production ounces • • PAR tailings operations are critical to deliver into this strategy Attractive growth potential through Royal Sheba and Egoli • › Updated Royal Sheba feasibility study by end September 2018 7

BACKGROUND Group empowerment structure 8

OUR PREDICAMENT AND ACTION PLANS – FEBRUARY 2018

OUR PREDICAMENT – FEBRUARY 2018 Group costs as defined by World Gold Council ZAR/kg 600,000 500,000 400,000 300,000 Gold price on 27 February 200,000 2018 – R495,000/kg 100,000 0 FY2014 FY2015 FY2016 FY2017 H1 FY2018 All-in sustaining costs 349,008 402,221 405,847 514,435 545,908 All-in sustaining cost excl. EGM U/G 448,579 Average gold price received 433,437 446,274 542,850 542,773 551,506 10